Is a K-1 from a S-corp subject to the same taxes as a bonus from a S-corp?
I keep hearing that a K-1 saves you payroll taxes (3%), whereas you pay full taxes on a bonus. I have also been told that although you may initially save payroll taxes (social security and Medicare) on the K-1, you will end up paying these when I file my personal taxes in April 2021.
Which one of the above is accurate?
Thanks
